Thailand is preparing to legalize casino resorts, or "entertainment complexes," in a bid to boost tourism and economic growth. The initiative, led by Deputy Finance Minister Julapun Amornvivat, is moving swiftly, with plans to formalize a tax-collection process by mid-October. The proposal is aimed at joining a lucrative global gambling industry, which could increase national revenues and curb illegal gaming activities. While some lawmakers suggest government-operated casinos, Amornvivat favors a model open to private, well-capitalized investors. The strategy, drawing parallels to Japan’s casino developments, positions Thailand for significant financial and social transformation.

Urgency in Formalizing Tax Collection

Julapun Amornvivat, Thailand’s Deputy Finance Minister, is spearheading the initiative to establish legal casino resorts in the country. He has instructed key governmental departments—customs, revenue, and excise—to quickly establish a tax-collection framework for the industry. Julapun is not wasting time, aiming for a concrete proposal by mid-October, underscoring the urgency and high stakes for Thailand’s future economic positioning.

Debate Over Casino Management

The debate on how Thailand’s casinos should be managed is heating up. While MP Korrawee Prissanantakul advocates for government-run casinos to ensure widespread public benefit, Finance Minister Amornvivat counters that the private sector should lead. He argues that leaving operations to industry experts will generate the most competitive, sustainable, and efficient model, capable of delivering maximum returns for Thailand’s economy.

Gambling Laws and Regional Competitiveness

Thailand’s current gambling laws, which prohibit most forms of betting aside from the national lottery and state-run horse races, are seen as outdated. The push to legalize casino complexes mirrors a global trend, particularly seen in Japan, where similar developments have been pursued to enhance tourism, attract foreign investment, and create new jobs. By allowing casinos, Thailand aims to compete with neighboring countries like Myanmar and Laos, capturing revenue streams that currently flow across borders.

Economic Projections and Tourism Impact

Thailand’s House of Representatives approved a draft casino bill earlier this year, with a clear focus on boosting tourism revenues. Projections indicate that legalized casinos could inject as much as 394.7 billion baht ($12 billion) into the economy annually. Tourists’ per-trip spending is expected to rise significantly, contributing an additional 448.8 billion baht. This would be a transformative shift for Southeast Asia’s second-largest economy, positioning Thailand as a key player in the global gaming market.

Opening Doors to Global Operators

Deputy Finance Minister Amornvivat has signaled that Thailand’s casino industry will be open to both local and global investors. Applicants must meet stringent criteria, including being limited or public companies registered in Thailand with a minimum paid-up capital of 10 billion baht. Licensing fees include a filing fee of 100,000 baht, an initial license fee of 5 billion baht, and an annual fee of 1 billion baht. The licenses will be valid for 30 years, with the possibility of renewal every decade. Major international players such as Las Vegas Sands, Wynn Resorts, and MGM are already showing interest.

Regional Monopoly vs. Cluster Competition

The current strategy envisions up to five casinos across the country, including two in Bangkok and others in Chiang Mai, Phuket, and the Eastern Economic Corridor. However, industry experts like Daniel Cheng have raised concerns about creating regional monopolies. Cheng advocates for a more competitive structure, suggesting a “regional cluster” approach that would encourage multiple operators within key tourism zones. This model could stoke competition, elevate service quality, and maximize economic benefits for Thailand.